VICTORIA’S key automotive body has called for a government mandate for end-of-life tyres to fight illegal dumping and drive investment in recycling.

The Victorian Automotive Chamber of Commerce (VACC) this week announced it will advocate for a mandatory, co-regulated stewardship scheme that would establish clear responsibility across the tyre lifecycle – from manufacturers and importers through to retailers and consumers. 

It said the proposed scheme would create a more level playing field and ensure all industry participants meet their environmental obligations.The VACC was responding to the inquiry by the House of Representatives’ standing committee on industry, innovation and science into the Australian tyre industry and its role in the circular economy.

However, VACC wants to take it further. It is calling on the government to move beyond investigation and mandate a mandatory product stewardship scheme for end-of-life tyres, similar to the successful model already in operation in New Zealand.

VACC CEO Peter Jones said the inquiry was well overdue “but welcome news.”

“The automotive industry is crying out for a level playing field when it comes to waste tyre management. The status quo simply isn’t working for legitimate businesses,” he said.

Australia currently generates more than 67 million end-of-life tyres each year, with about 25 per cent unaccounted for in Victoria alone – potentially illegally dumped or stockpiled. 

The VACC said that the current voluntary stewardship scheme, whilst valuable in funding research, has failed to substantially reduce collection costs or drive meaningful investment in recycling infrastructure.

VACC CEO Peter Jones

“Rogue operators are placing legitimate businesses at a significant disadvantage, often using deceptive tactics to undercut responsible retailers and collectors,” Mr Jones said.

“These operators dump tyres illegally, create fire hazards, and damage community environments. This isn’t just an environmental issue, it’s a competitive fairness issue for law-abiding businesses.

“We also need significantly greater penalties for illegal dumping and rogue operators.

“A regulatory framework with real teeth is essential to protect both the environment and legitimate businesses operating responsibly within the industry.”

The VACC said it is committed to collaborating with the parliamentary inquiry and the government to develop practical solutions that drive genuine innovation, support investment in recycling technologies, and foster sustainable business models for Victoria’s automotive sector.

“The tyre industry has enormous potential to contribute to a circular economy and create valuable jobs in recycling and resource recovery,” Mr Jones said.

“But we need government leadership and a mandated stewardship scheme to make this a reality.”

Tyre Stewardship Australia said in a statement that it applauded Rob Mitchell MP “for recognising the challenges faced in building circular outcomes for end-of-life tyres in Australia.”“This new inquiry by the House of Representatives standing committee on industry, innovation and science is a crucial step towards unlocking the $70 million in domestic market opportunities available through a strengthened circular economy for tyres,” it said.

“This announcement is particularly welcome after the recent ‘round trip summit’ in Melbourne, which brought together over 200 industry participants from around the world to discuss proven technologies and infrastructure pathways for end-of-life tyres. 

“The summit demonstrated strong industry support for reinforcing domestic markets and highlighted the urgent need to redirect end-of-life tyres back into the Australian economy, reducing reliance on offshore markets and creating local value.

“A comprehensive approach to the full tyre lifecycle – from design through to recycling and market development – aligns with global best practices for managing chemicals of concern, promoting reuse and retreading, and preparing industry for higher order circular economy outcomes.

“This inquiry presents a vital opportunity to advance innovation and infrastructure that is both circular and grounded in scientific evidence.”

The committee is seeking written submissions addressing the inquiry terms of reference by Friday January 23, 2026. All members of the automotive industry are encouraged to engage with the inquiry.